260 likes | 283 Vues
central government procurement. Objectives:. To understand: Procurement – what is it? What makes procurement a topical issue in central government? What is the Office of Government Commerce (OGC) and its role? What is the OGC Procurement Cycle? Practice: A procurement skills exercise.
E N D
Objectives: To understand: • Procurement – what is it? • What makes procurement a topical issue in central government? • What is the Office of Government Commerce (OGC) and its role? • What is the OGC Procurement Cycle? • Practice: A procurement skills exercise
An Effective Procurement Strategy– why important in the Public Sector? • Annual procurement spend • Public sector £125 billion+ • Central Govt & Agencies £15 billion+ • Management of procurement and commercial activities -> savings • Programmes and projects (e.g. OGC Gateway™ method for scrutinising project progress largely involves assessing procurement processes)
What is Procurement Good Practice? Economy • Get the price down • Savings for front-line services Efficiency • Balance whole life cost – fitness for purpose • Embed efficient ways of working • Coordinate public sector procurement
What is Procurement Good Practice Cont’d Effectiveness • Procure fit-for-purpose goods/services • Public/ private partnerships • Treat suppliers fairly • Open government markets to competition Other Sustainable procurement practices (e.g. carbon neutral government estate by 2012) Meet EU rules
The OGC • Established post Gershon Review (1991) • A “one stop shop” central procurement organization • Powers to set high performance standards on procurement/project management • Monitor Departmental performance • Facilitate inter-departmental collaboration • Develops relations between public sector buyers and suppliers • Government Procurement Service (GPS) represents and supports procurement professionals across government.
Relationship Management • Adequate resources required • ‘Overhead' in-house resource (estimated 2% contract value) • Aspects of contract and relationship management include…
Relationship Management • Planning • Resource considerations (for goods/services) to achieve completion within timescale • Procurement plan • Effective lines of communications • Contract manager • Methods of contract monitoring and reporting
\the red and blue exercise A Procurement Skills Exercise
Objective: • The objective of the exercise is for your group to end up with a positive score
Procedure: • Each team plays either a red or a blue card in each round by giving it to their team rep (Nicola or Amana) • The choice will not be announced until both teams have played • There will be TEN rounds • After the FOURTH round – possible conference • After the EIGHT round – possible conference • The NINTH and TENTH rounds score double points
Scoring: Remember: • The objective of the exercise is for your group to end up with a positive score.
Conclusion • Decisions that were dominated by competitive ‘winning’ psychologies were counter productive • Aggressive and competitive negotiations were experienced within and between the teams • It’s very easy to be ‘led astray’
Conclusion • Maximum score 72 points • Minimum score -72 points • Total points in game is zero • Lowest risk strategy 36 points each • Total points in game is 72 • Successful negotiation should end in a ‘win-win’ situation • Too aggressive - the negotiation could fail • Too passive – does not achieve best value
Goals • What do you want to get out of the negotiation? • What do you think the other person wants?
Relationships • What is the history of the relationship? • Could or should this history impact the negotiation? • Will there be any hidden issues that may influence the negotiation? • How will you handle these?
Trades • What do you and the other person have that you can trade? • What do you each have that the other wants? • What are you each comfortable giving away?
Alternatives • If you don’t reach agreement with the other person, what alternatives do you have? • Are these good or bad? • How much does it matter if you do not reach agreement? • Does failure to reach an agreement cut you out of future opportunities? And what alternatives might the other person have?
Style is key • For a negotiation to be 'win-win', both parties should feel positive about the negotiation once it's over. • Displays of emotion are inappropriate because they undermine the rational basis of the negotiation and because they bring a manipulative aspect to them.
Successful negotiation • The negotiation itself is a careful exploration of your position and the other person’s position. • The goal is finding a mutually acceptable compromise that gives you both as much of what you want as possible. • In an ideal situation, you will find that the other person wants what you are prepared to trade, and that you are prepared to give what the other person wants.
Successful negotiation • If this is not the case and one person must give way • It is fair for this person to try to negotiate some form of compensation for doing so – the scale of this compensation will often depend on the many of the factors we discussed above. • Ultimately, both sides should feel comfortable with the final solution if the agreement is to be considered win-win.
Successful negotiation • Only consider win-lose negotiation if you don't need to have an ongoing relationship with the other party • Having lost, they are unlikely to want to work with you again. • Equally, you should expect that if they need to fulfill some part of a deal in which you have "won," they may be uncooperative and legalistic about the way they do this. • Reputation is at risk